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Futures Up, But IBM, AmEx Blunt Dow’s Gains; Bitcoin Extends Rebound | Stock News & Stock Market Analysis

Stock futures managed tight gains Friday, as early earnings reports and the rising possibility of a federal shut down kept investor optimism in check.

XNasdaq 100 futures rose 0.3% as NetEase (NTES), Nvidia (NVDA) and Starbucks (SBUX) all hammered out healthy early gains. Russell 2000 futures were also up 0.3%, while futures for the Dow Jones industrial average and the S&P 500 traded more narrowly above fair value.

For the week, the Dow Jones index heads into Friday’s session ahead 0.8% through Thursday. The Nasdaq Composite shows a 0.5% gain and the S&P 500 is up 0.4%.  The Dow is tracking toward its first weekly close above 26,0000. The S&P 500 finished Thursday just a shade below the 28,000 level.

In Washington, the House approved a temporary bridge measure that would keep federal lights on until Feb. 15, buying time to hash out an overall budget agreement. But Senate Democrats have so far withheld support for the measure, holding out for concessions on Deferred Action for Childhood Arrivals, the rule concerning illegal immigrants that have come to be known as ‘Dreamers.’

The Washington Post reported that the general rules of engagement for a shutdown would mean 78% of defense workers would go on furlough, 83% of Treasury employees, 78% at the Department of Agriculture and 87% at the Commerce Department, as well as more than 95% of workers at the Department of Education, Housing and Urban Development and the Environmental Protection Agency.

The Trump administration and Interior Department were cobbling together plans to attempt to keep National Parks open, but without rangers and other staff on site. Absent an agreement, the furloughs would go into effect at midnight on Friday.

IBM, AmEx Drag On Dow; Nike, FANG Stocks, Nvidia Rise

On the Dow, American Express (AXP) slumped 2.4%, IBM (IBM) tumbled 3.4%, after reporting fourth-quarter results late Thursday.

American Express turned in an above-expectation Q4 performance, but suspended its share buyback initiative during the first-half in order to book a $2.6 billion charge related to the impact of reformed tax rules. AmEx shares are extended, up 22% since clearing a flat base in June.

IBM’s revenue and earnings results also cleared analyst targets, reporting its first quarterly revenue increase since 2011. But futures backed off hard in premarket trade, threatening to flatten the stock’s 3.7% advance for the week through Thursday. IBM has advanced in 16 of 18 recent sessions, lifting it 22% off an August low, and well up the right side of a possible 10-month base pattern.

Nike (NKE) posted the Dow’s strongest premarket move, up 1% after an upgrade to outperform, from neutral, by Wedbush Securities. Nike shares are extended, up about 12% since breakout out from a cup-with-handle base in November.

Apple (AAPL) traded a fraction in the red as it continues its struggle to hold above a flat base buy point at 176.34.

The four FANG stock tech names all traded higher. NetflixNFLX led the group, up 0.7% ahead of the open. Netflix closed Thursday just below Tuesday’s high and almost 8% above a 220.48 flat base buy point.

IBD 50 stock Atlassian (TEAM) toppled more than 4%, after reporting late Thursday its fiscal second-quarter results bested expectations, but its third-quarter profit guidance was shy of consensus views. The stock ended Thursday’s session almost 4% above a 53.55 buy point from a second-stage cup base.

Nvidia posted the strongest premarket gain among IBD 50 names, up 1.3%.  Shares ended Thursday in a buy range, above a cup base buy point at 218.77.

Blockchain Stocks Positive As Bitcoin Strengthens

Bitcoin continued its rebound, trading above $11,800 according to Coinbase, up 20% from a Wednesday low. Blockchain-related stocks were generally positive.

  • Riot Blockchain (RIOT):  up 1.7%
  • Mara Patent Group (MARA): up 0.8%
  • Bitcoin Investment Trust (GBTC): unchanged
  • Overstock.com (OSTK): up 3%
  • Eastman Kodak (KODK):  up 3%

Global Markets Rise; Consumer Sentiment Coming Up

Overseas, global markets were all in a positive mood, with leading benchmarks in China and Japan marking off solid gains and Europe’s top indexes showing solid gains near midday.

Friday’s economic news is limited, with the  University of Michigan’s preliminary Consumer Sentiment numbers for January due out at 10 a.m.ET, and BakerHughes (BHGE) rig count report on the docket for 1 p.m. ET release.

Friday’s Other Important Early Market News:

The Big Picture: Several Low-Profile, Highly Rated Stocks Moved Into Buy Zones

Hot Defense Stocks Get More Lift: Investing Action Plan

These 5 Stocks Race To Buy Points From The Hottest Industry Group

 

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